Wednesday, July 31, 2013

Number of global music streaming subscribers will increase almost threefold from 2012 to 2017, according to Parks Associates

Research shows connected music system owners more than twice as likely to subscribe to streaming music services

New digital audio research from Parks Associates predicts the number of music streaming subscribers worldwide will reach 15 million by 2017, and the number of connected audio products will nearly double between 2013 and 2017. Analysts report a strong correlation between the growing penetration of networked audio products, including wireless speakers, speaker docks, multiroom digital music systems, and A/V receivers, and music service subscriptions to Rhapsody, Pandora, Rdio, Spotify, and others.

“Over the past few years, business models and the prospects for profitability in Internet-based music services have changed substantially. The market for connected audio devices is changing as well. Parks Associates first reported on the linkages between music services and connected audio products in 2011,” said Brett Sappington, director, research, Parks Associates. “Since then, the number of users of major streaming music services has increased over 200%, while growth in paying users has exceeded 80%.”

Parks Associates - Music Service Subscriptions and Connected Audio Products

The report Evolution of Digital Music on Connected Devices finds worldwide unit sales of audio products with networking capability have increased more than 170% to exceed 24 million in 2012. U.S. owners of music systems and devices that connect to the Internet are more than twice as likely as average broadband households to subscribe to music services. In a May 2013 U.S. survey, fourteen percent of households with connected music systems paid for music services, compared to six percent of households without connected music systems. 

“Industry attention has focused on conflicts between music services such as Spotify and artists like Thom Yorke from Radiohead, yet the partnerships between streaming music companies and connected CE manufacturers or content providers are fundamental to driving consumer usage,” Sappington said. "Partnerships such as Pandora with Google's Chromecast or the Rdio deal with Live Nation will put their services in front of more people, and that accessibility is translating to more users."

Parks Associates analysts say streaming music companies are aggressively tying their services to connected CE products by making available their application programming interfaces (APIs) for a wide number of companies to integrate with their products. For example, Pandora is available on more than 900 CE devices, including a TV-based feature available on the Xbox 360 gaming console.

The firm also notes device companies are taking advantage of lower-cost technologies and connectivity solutions such as AirPlay from Apple to support new use cases such as multiroom streaming, multipoint surround sound for home theaters, and point-to-point connections between mobile devices such as smartphones and tablets and audio equipment.

For information, visit or contact, 972-490-1113.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media.

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